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We are share holders in a business that has folded. We are…

Customer Question

Hi, we are share...

Hi, we are share holders in a business that has folded. We are not directors in the business and have to now pay a large loan back to the bank.I know that we have to do that but as we are not directors of this business can we be held accountable for outstanding debt?

Lawyer's Assistant: What state are you in? It matters because laws vary by location.

the shareholders will not be held liable, unless you are considered de facto directors.

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Customer reply replied 7 months ago

The director is trying to get us to refinance our house to help them pay debts. The bank will not do this as our income is too low and are already paying back $165,000 loan against our house for the business. I think they are just trying it on me and i just want to be clear that we are not responsible if we are not directors .

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DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).